Integration of Conventional Payment Cards and Cryptocurrency Exchanges Driving Adoption
A Visa executive has emphasized the crucial role that the integration of conventional payment cards with cryptocurrency exchanges is playing in driving the adoption of digital assets. Akshay Chopra, Visa’s VP head of Innovation & Design, spoke about this during a panel at the Blockchain Economy Dubai Summit. He highlighted how Visa cards have acted as a bridge between fiat currencies and cryptocurrencies, allowing customers to use digital assets for everyday transactions.
Visa's Partnership with Cryptocurrency Exchanges
Chopra revealed that Visa partnered with 75 of the largest cryptocurrency exchanges in 2021, enabling them to issue Visa cards. This partnership opened up a network of over 80 million Visa merchants who can now accept cryptocurrencies as a means of payment. According to Chopra, this initiative facilitated $3 billion of payment volume, underscoring the potential of conventional financial institutions to tap into the growing Web3 ecosystem.
Disrupting Payments Settlement through Blockchain-Based Solutions
Chopra also discussed the potential of blockchain-based solutions in disrupting payments settlement between financial institutions. He highlighted the limitations of existing protocols like the SWIFT payment system, which is not fully functional 24 hours a day. Chopra showcased a pilot project with Circle using USD Coin (USDC), which allowed cryptocurrency exchange partners to settle payments with USDC at the end of each day. This innovative approach offers a cheaper, 24/7 alternative to traditional methods of settlement.
Regulatory Hurdles and Proactive Approaches
While regulations present a hurdle for mainstream financial institutions to fully embrace blockchain technology and cryptocurrency-based payments, Chopra believes that proactive regulatory environments, such as the one in the United Arab Emirates (UAE), are more beneficial. He praised the UAE's approach of inviting industry input when developing regulatory frameworks, ensuring they meet the industry's needs and account for future developments.
Visa's Commitment to Driving Adoption
In April 2023, Visa made headlines with the launch of a crypto product roadmap aimed at driving adoption of stablecoin and public blockchain payments by mainstream financial institutions. The company is also investing $100 million into exploring AI-powered products and solutions focused on payments and commerce through Visa Ventures.
